Thursday, April 3, 2014

Millenials Have Great Homebuying Tools Available To Them

The economy seems to be finally turning, and home loan interest rates
are still historically low. Real estate values are starting to climb as
well, all of which makes for a growing opportunity for new homeowners
to get into the market before it gets too expensive again.
Millennials Don’t Seem To Be On Board
They represent the next generation of homebuyers, but a number of
barriers can seem to be smack in the way, discouraging many. Yet there
are ways around these issues.
According to the Boston Globe, only 32 percent of Millennials are
homeowners in 2014, either with a house or a condominium. A number of
factors contribute to this situation, and the big issue is finding a
viable career. The general unemployment rate for young people is at 16
percent nationwide, almost double the regular average for all ages
combined.
Add in the fact that many have large student loans eating up what
income is earned in loan payments, and that doesn’t leave much for
saving into a down payment or a mortgage payment. In fact, one out of
three college graduates right now has moved back in with the parents.
The career-chase situation is not a new one. The previous bunch,
Generation X, experienced the same thing in the early 1990s with just as
high an unemployment rate. The big takeaway from their experience is
that the dip and labor famine is temporary. Most Generation X folks now
are well-employed and living in regular, affordable homes across the
country.Further, Some Very Helpful Tools Are Still Available For New Buyers:

Any homebuyer with military status can take advantage of Veterans
Administration loans with far better rates than the normal market,
making mortgage payments cheaper.

Those buying in rural areas can take advantage of rural
homebuyer’s assistance programs provided by the U.S. Department of
Agriculture to help people move to small towns and similar communities.

The Housing and Urban Development Agency provides HUD loans that
make it very affordable for those with limited income to purchase
HUD-owned homes as first-time buyers and get into real estate.

And the current market still has plenty of quality used homes from
prior foreclosures that are marked well below their real value to
move these units in sales.

Of course, the big response from Millenials is how do I earn more to
even get started. Like Generation X folks before them, Millenials can’t
wait for a job to be made available on a platter. While looking, many
smart folks have started their own businesses on the Internet. If a
current job is enough to cover current bills, a second income can be
entirely dedicated to saving, which can generate thousands of dollars
quickly. Even a part-time second job that creates $1,000 a month
produces $12,000 a year and in two years enough for a sizable down
payment.
Don’t give up, but definitely try smarter.